Cabinet worries 2014 outlook will only see a 3-3.5% growth in GDP

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BANGKOK, 7 January 2014 The Cabinet has expressed its concerns over the economic outlook of 2014, saying the GDP growth may only be 3 – 3.5% if the budget disbursement for the government’s 2 trillion baht mega project and its water management scheme cannot be achieved. 

Deputy Prime Minister and Commerce Minister Niwatthamrong Boonsongpaisan stated that the Office of the National Economic and Social Development Board (NESDB) reported the total budget disbursement in the first 3 months of 2014 to be 1 trillion baht, or about 20% less than projected.

In addition, the NESDB is also closely monitoring the weakening Thai baht from last year’s rate of 30.73 baht per US Dollar.

Mr. Niwatthamrong went on to say that an economic ministers’ meeting has forecast that if the political conflicts continue to be prolonged, which inhibits the state to invest in the mega transport project and the water management project, the previously expected GDP growth of 4-5% will decrease to only 3 – 3.5%.